Two monetary equilibria coexist, impacting prices, welfare, and currency substitution.
The article explores how money and prices are determined through a model that includes bargaining and search. It shows that there are always two different equilibria where money is widely accepted, leading to variations in prices, output, welfare, and money circulation speed. Additionally, there are situations where money is universally accepted regardless of the state of the economy. This has important implications for currency use and market interventions.